New Delhi:
The Cabinet is expected to meet today to finalise details of seven questions that the government plans to ask the Supreme Court through a presidential reference on the issue of telecom licences in view of the court's verdict in the 2G scam case.
In January, the Supreme Court cancelled 122 licenses granted in 2008 by then Telecom Minister A Raja for mobile network licenses and accompanying second generation or 2G spectrum; the two judges who delivered the verdict said all national resources must be distributed only through an auction. The licenses revoked by the court had been allocated on a first-come-first-serve basis by A Raja and the judges said this policy was "fundamentally flawed" partly because it presented an advantage to anyone with access to the "corridors of power."
The government has said that while it in no way challenges the verdict of the court, it needs answers on how natural resources should be distributed hereon. The Prime Minister had in February sanctioned a Presidential reference on the matter - which means that the government will formally request President Pratibha Patil to ask the Supreme Court if its order applies to all natural resources.
NDTV has learnt that these are the seven questions that the government is likely to pose to the Supreme Court through the presidential reference:
1) Whether licenses, other than the ones auctioned, were granted illegally?
2) Were all licenses granted on a first-come-first-served basis, upto 2007 granted illegally?
3) If yes, then what steps should be taken by the government to deal with those licenses?
4) If no, is the Government of India obligated to ensure a level-playing field in granting licenses and whether it is required to withdraw spectrum allocated to all existing licenses? Also, should it be with retrospective effect and be charged and at what price and what date?
5) Is dual technology licences illegal and is the government of India required to make a level-playing field and withdraw all spectrum allocated to licensees in 2008? Should they be charged, and at what price and from what date?
6) Does the 3G spectrum auction allotted in 2010 to entities whose licenses have been quashed in the judgement referred to in the above stand withdrawn?
7) Is allocation of spectrum through auction the only legitimate mode even when it is inadequate or there is no competition?
The President can, under Article 143 of the Constitution, refer matters of public interest to the Supreme Court. The Supreme Court will then set up a bench of either three or five judges to provide clarifications requested by the President. These judges could talk to parties involved with the case or to experts; regular hearings will be held before they share their conclusions.
The last time such a presidential referral was made was in 2004 for a dispute between Punjab and Haryana over water-sharing.
The 122 licenses that were cancelled in January are at the heart of what's believed to be India's biggest scam. As Telecom Minister, Mr Raja, now in jail for over a year, allegedly granted sweetheart deals to companies who conspired with him - not only did he give them licenses at throwaway prices, but the spectrum they needed was free. Many of the executives of these companies were arrested last year and spent several months in jail before being granted bail.